Income, separate businesses
 8.3 (1) In this section, “core business property” means property that is or was used or held by a municipal electricity utility in carrying on a core electricity business; “core electricity business” means a business in which the primary business activity is the generation, transmission, distribution or retailing of electricity or any combination of two or more of those activities; “non-core business” means a business that is not a core electricity business; “non-core property” means, in respect of a municipal electricity utility, property that was never used or held by the utility in carrying on a core electricity business; “restricted allowable capital loss” means, in respect of a taxation year, an allowable capital loss or allowable business investment loss realized in the year on the disposition of a non-core property; “restricted non-capital loss” means, in respect of a taxation year, a loss for that year from a non-core business; “total restricted allowable capital loss” means, in respect of a municipal electricity utility for a taxation year, (a) nil, if the year ends before January 1, 2008, or (b) the sum of the utility’s restricted allowable capital losses for the year, if the year ends after December 31, 2007; “total restricted non-capital loss” means, in respect of a municipal electricity utility for a taxation year, (a) nil, if the year ends before January 1, 2008, or (b) the sum of the utility’s restricted non-capital losses for the year, if the year ends after December 31, 2007.  O. Reg. 141/09, s. 5. (2) An expression used in this section that has a meaning assigned by the Federal Act, the Corporations Tax Act or the Taxation Act, 2007 has the same meaning for the purposes of this section.  O. Reg. 141/09, s. 5. (3) The following rules apply in determining a municipal electricity utility’s taxable income for a taxation year ending after December 31, 2007: 1. For the purposes of applying sections 3 and 111 of the Federal Act, each of its restricted non-capital losses and restricted allowable capital losses for the year is deemed to be nil. 2. Subject to paragraph 4, there may be added to the amount otherwise deducted in computing its taxable income for the year an amount not exceeding the lesser of “A” and “B” where, “A” is the amount by which the sum of its total restricted non-capital losses for the year, for its last 20 taxation years ending before the year and for its first three taxation years ending after the year exceeds the portion of that sum that may reasonably be considered to have been added under this paragraph to the amount deducted in computing its taxable income for a previous taxation year, and “B” is the amount, if any, by which “C” exceeds “D” where, “C” is its total income for the year from property and non-core businesses, and “D” is the amount, if any, by which its total losses for the year from its core electricity businesses exceeds its total income for the year from its core electricity businesses. 3. Subject to paragraph 4, there may be added to the amount otherwise deducted in computing its taxable income for the year an amount not exceeding the lesser of “E” and “F” where, “E” is the amount by which the sum of its total restricted allowable capital losses for the year, for its taxation years preceding the year and for its first three taxation years ending after the year exceeds the portion of that sum that may reasonably be considered to have been added under this paragraph to the amount deducted in computing its taxable income for a previous taxation year, and “F” is the amount, if any, by which “G” exceeds “H” where, “G” is the sum of all amounts, each of which is a taxable capital gain of the utility for the year from the disposition of a non-core property, and “H” is the amount, if any, by which the sum of all amounts each of which is its allowable capital loss or allowable business investment loss for the year from the disposition of a core business property exceeds the sum of all amounts each of which is its taxable capital gain for the year from the disposition of a core business property. 4. If control of the municipal electricity utility is acquired by a person or group of persons, i. no portion of its total restricted allowable capital loss or total restricted non-capital loss for a taxation year ending before the acquisition of control may be included in an amount determined under paragraph 2 or 3 for a subsequent taxation year, and ii. no portion of its total restricted allowable capital loss or total restricted non-capital loss for a taxation year ending after the acquisition of control may be included in an amount determined under paragraph 2 or 3 for a taxation year ending before the acquisition of control.  O. Reg. 141/09, s. 5. (4) For the purposes of applying Parts V and VI of the Corporations Tax Act, an amount that is deducted by reason of paragraph 2 or 3 of subsection (3) for a taxation year is treated in the same manner as if it were deducted under section 111 of the Federal Act or under that section as it applies for the purposes of the Corporations Tax Act or the Taxation Act, 2007, as the case may be.  O. Reg. 141/09, s. 5.